- 23 June 2022
- Posted by: Cryptovalues
- Category: Central Banks, World News
The Japanese parliament has approved a law to regulate stablecoins in order to contain risks to the financial system and to strengthen investor protections.
According to the new payment services law, stablecoins will be able to be issued by banks and authorised financial intermediaries, as well as by trusts that will have to guarantee the currency’s ready convertibility on demand.
Intermediaries will be required to register for their services and to adopt stricter monitoring and anti-money laundering measures than in the past.
The government intends to define the required terms in detail and make them known in its guidelines and other means.
It was the local Finance Commission that was to prepare the law in 2021, but now, given the situation, it wants to speed things up.
The restrictions are designed precisely to offer more protection to investors in order to prevent a repeat of what we saw with Terra Luna.
The new Japanese law is in line with the trend in both the US and Europe.
However, it seems that the Japanese law is much stricter than those in other countries.
One of the reasons for the controversy is that it has imposed restrictions on the entry of foreign stablecoins, because in order to issue them in Japan, it is necessary for an organisation to set itself up as an issuer and manage reserve assets, such as the dollar.
What has happened in the recent period has not left Japanese bureaucrats insensitive, as they demonstrate a thorough control of the sector.
In Europe, too, the possibility of intervening in the sector is being publicly discussed, but the timing is unknown.